If you’re a higher-rate or additional-rate taxpayer, you may be owed extra pension tax relief that isn’t added automatically.

Here’s how to claim it through a Self Assessment tax return, even if you’ve never done one before.

Why do you need to claim it?

For most pension contributions, the pension provider automatically adds 20% basic-rate tax relief. But if you pay tax at 40% or 45%, you’re entitled to more.

Do you need to do a tax return?

You will need to complete a tax return if:

• You pay 40% or 45% tax and
• You pay into a personal pension or workplace pension that uses relief at source

IMPORTANT: You don’t need to complete a tax return if your workplace uses salary sacrifice or net pay. In that case, tax relief is automatic.

How to submit a tax return:

• Step 1: Register for Self Assessment (if you haven’t before)
  You can do this online with HMRC.
• Step 2: Log in and start your return
  Login here using your Government Gateway account.
• Step 3: Find the “Pension Contributions” section
  This is where you enter the amount paid into your pension, including the 20% tax relief added. For example, if you paid £80 and your provider added £20, you enter £100.
• Step 4: HMRC calculates your extra tax relief
  This may come to you as a tax refund, reduced tax bill or an adjusted tax code (meaning more take-home pay each month).
• Step 5: Submit your return
  The deadline is 31^st January for online returns and 31 October for paper returns.

What if you missed previous years?

You can normally claim for the last 4 tax years. This could add up to hundreds or even thousands of pounds of missed tax relief.

The takeaway

If you’re a higher-rate or additional-rate taxpayer, submitting a tax return can unlock valuable pension tax relief that would otherwise be left unclaimed.

A few minutes of paperwork can be a big boost to your pension and even a tax refund in your bank account.